This article investigates whether the European integration process altered the relative importance of host country location factors. In particular, we investigate to what extent knowledge-seeking is a relevant investment motive, which has been documented as a key determinant for OFDI from other emerging economies. We apply a discrete choice approach to model foreign location choice of firms from CEE countries (CEECs) within the EU 27 (1996–2010). We find that the EU integration process is related with increasing importance of market access and less emphasis on labour cost advantages. We find heterogeneity in the valuation of foreign knowledge-related assets. The location probability within the EU15 is positively associated with knowledge-seeking. It also plays a role for technology-intensive industries and larger firms.

Link to early view: http://onlinelibrary.wiley.com/doi/10.1111/jcms.12260/abstract